Business Models Evolution: Towards a Dynamic Consistency View of Strategy

Abstract

This article starts from a paradox. Business models are often associated with change - especially radical ones - but have often been used in a static manner to describe the business model of a company. After providing our definition of a business model as a combination articulating resources and competences, organization of activities and a value proposition, we introduce dynamics by showing how different voluntary and emergent changes can alter positively or negatively its consistency. We illustrate our discussion with the case of Arsenal football club, an organization which faces important modification in its business model over the last ten years. We conclude with the importance for managers to insure a dynamic consistency between the different elements of their business model by anticipating the repercussions of changes affecting one dimension on the others. This ability enables an organization to maintain sustainability while modifying its business model.